2 Reasons Why I'm Buying SCHD Over S&P 500

Jan. 21, 2025 1:01 AM ETS&P 500 Index (SPX), SCHD30 Comments
(8min)

Summary

  • The S&P 500 is overvalued and concentrated.
  • SCHD offers a favorable alternative with a 3.55% dividend yield, focusing on value stocks and dividend growers, which are better suited for the current high-yield environment.
  • Value stocks in SCHD are historically cheap relative to growth stocks, making them attractive, especially given the current interest rate landscape.
  • SCHD has a strong track record of outperforming the S&P 500 with lower volatility during market downturns, making it a solid buy for 2025.
  • Looking for a helping hand in the market? Members of High Yield Landlord get exclusive ideas and guidance to navigate any climate. Learn More »
Life directions. Making a big decision. Choice.

Janis Abolins

Dear readers,

The S&P 500 (SPX) is the most popular index in the world, is often considered as a benchmark, against which investors compare other investment ideas, and forms the basis of many investors' portfolios, including mine.

There is no

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This article was written by

4.33K Followers

David Ksir has extensive private equity experience in finance and European real estate. He manages a small 8-figure family office focused on generating reliable dividend income through value investing.

David also contributes to the High Yield Landlord which is led by Jussi Askola and has a team of 5 other top Seeking Alpha REIT and income analysts. They help investors become passive landlords with their 8% yielding real estate portfolio. Service features include: three portfolios (core, retirement, international), community through chat room, buy/sell alerts, and educational content.

Disclosure: I am associated with another SA contributor Deep Value Explorer.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY, SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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